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Revision as of 10:58, 3 February 2018 by Doug Williamson (Talk | contribs) (Expand to note use of overdrafts for medium-term financing.)

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A line of credit which is applied to a current account and may be drawn on demand.

It is also known as a demand loan, as it is repayable to the bank on demand by the bank.

For this reason, it is risky to use overdrafts for core financing needs.

See also